The End For Bitcoin Draws Near (SegWit2x)

7/31/2018 6:37:49 PM by admin

The Blockchain algorithm is running without issue on nodes across the globe for nearly two decades. Like all things technology, the time comes for an upgrade. That time has arrived for the Blockchain. SegWit2X is an upgrade to the Blockchain set to deploy on the Aug 1, 2017. The upgrade will double the size of the block and increase the Bitcoin network performance which is very much in need now and more so in the future. So what is the problem? Just click the upgrade package and wait for it to install. There is fear that some crypo current platforms will not support the new blocks. Bitcoin miners also are not fully on board with the implementation and some are deciding to stay with the old block structure. Since all crypo current is a block in the Bockchain, the idea that after Aug 1 some blocks may no longer be valid implies that some individuals in the Virtual Currency industry stand to loose large amounts of their virtual wealth. Thus far, there is a determination that 80% of the Bitcoin miners are needed to adopt this new block for the current levels of Bitcoin circulation to be maintained. So far about 60% of the currency miners have pledged to implement the new block structure.

What does this all mean? At 80% implementation there is the chance that 20% of all Bitcoin wealth will vanish. In terms of virtual currency this is value taken off of the markets permanently. Who's coins will be among those 20%? Everybody is working hard not end up in that group. Right away we see the natural tenancy for fragmentation. Bitcoin could split into two groups and therefore creating and separate denomination of currency. It would be something like, currently we only have a 100 dollar bill in circulation. Now we have a 50 dollar bill and 20 dollar bill in circulation.

If there is a 20% loss in circulation, then the value of Bitcoin should shoot through the roof and cover those with less virtual jingle in their crypo pockets. This most likely will be the outcome, but maybe without the full 20% loss.

Much of the fear is also of the unknown. New code is being introduced without much vetting, so anxiety is to be expected. After all the Blockchain algorithm mysteriously appeared and deployed, now there will be changes to its structure and the virtual wealth it has generated.

As we approach Aug 1, all virtual currency players will have their eyes wide open for opportunities and risks. Unexpected news should not be a surprise.